MIRA INFORM REPORT

Report Date :

15.07.2011

IDENTIFICATION DETAILS

Name :	FIAT INDIA AUTOMOBILES LIMITED
Registered Office :	Plot No. B – 19, MIDC, Rajangaon Industrial Area, Ranjangaon, Taluka Shirur, Pune – 412 210, Maharashtra
Country :	India
Financials (as on) :	31.03.2010
Date of Incorporation :	02.01.1997
Com. Reg. No.:	11-130940
Capital Investment / Paid-up Capital :	Rs.14349.280 Millions
CIN No.: [Company Identification No.]	U28900PN1997PLC130940
TAN No.: [Tax Deduction & Collection Account No.]	MUMF02175F
PAN No.: [Permanent Account No.]	AAACF1716D
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturer of Automobiles
No. of Employees :	600 Approximately

RATING & COMMENTS

MIRA’s Rating :

B (28)

RATING		STATUS	PROPOSED CREDIT LINE
26-40	B	Capability to overcome financial difficulties seems comparatively below average.		Small

Maximum Credit Limit :	USD 29000000
Status :	Moderate
Payment Behaviour :	Slow but Correct
Litigation :	Clear
Comments :	Subject is a 50-50 Joint venture between Tata Motors, India and Fiat Automobiles, Italy. There appears some losses being incurred by the Indian operations. However trade relations are reported as fair. Business is active. Payments are reported to be slow but correct. In view of strong promoters the company can be considered for small to mediocre business dealings at usual trade terms and conditions.

NOTES :

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

INFORMATION PARTED BY (GENERAL DETAILS)

Name :	Mr. Rama Krishshna
Designation :	Finance Manager
Date :	14.07.2011

LOCATIONS

Registered Office/ Factory :	Plot No. B – 19, MIDC, Rajangaon Industrial Area, Ranjangaon, Taluka Shirur, Pune – 412 210, Maharashtra, India
Tel No. :	91-2138-672700/ 232144/ 5/ 6/ 7
Fax No. :	91-2138-232143
E-Mail :	anil.joshi@fiat.com anil.joshi@fipl.com
Website :	www.fiat-india.com
Corporate Office :	Corporate Park II, 5^th Floor, Sion Trombay Road, Chembur, Mumbai-400071, Maharashtra, India
Tel. No.:	91-22-67293800

DIRECTORS

AS ON 23.09.2010

Name :	Mr. Ravi Kant
Designation :	Director
Address :	A – 3, Pallonji Mansion, 43 Cuffe Parade Colaba, Near President Hotel, Mumbai – 400005, Maharashtra, India
Date of Birth/Age :	01.06.1944
Date of Appointment :	28.12.2007
Name :	Mr. Alfredo Altavilla
Designation :	Director
Address :	Vialle Delle Acacie, 16/5 – 10024, Moncalieri, Torino, Italy
Date of Birth/Age :	02.08.1963
Date of Appointments :	05.09.2004
Name :	Mr. Rajiv Dube
Designation :	Director
Address :	322, Samudra Mahal, Dr. Annie Besant Road, B A Worli, Mumbai – 400018, Maharashtra, India
Date of Birth/Age :	04.02.1962
Date of Appointment :	28.12.2007
Name :	Mr. Stefan Ketter
Designation :	Director
Address :	Strada Val Pattonera, N 163, INT 26, Torino Italy
Date of Birth/Age :	31.07.1959
Date of Appointments :	26.09.2008
Name :	Mr. Harald Jakob Wester
Designation :	Director
Address :	Strada Val Pattonera, N 163, INT 26, Torino Italy
Date of Birth/Age :	26.02.1958
Date of Appointment :	26.09.2008
Name :	Mr. Giovanni De Filippis
Designation :	Director
Address :	Lal Bahadur Shastri Marg, Kurla [West], Mumbai 400070, Maharashtra, India
Date of Birth/Age :	25.07.1966
Date of Appointment :	13.12.2007
Name :	Mr. Clive Hickman
Designation :	Director
Address :	Acacia House, Park Road, Chipping Campden, GL 556EB UK
Date of Birth/Age :	19.11.1954
Date of Appointment :	26.09.2008
Name :	Mr. Rajeev Kapoor
Designation :	Director
Address :	House No.867, Sector 9, Faridabad - 121006, Haryana
Date of Birth/Age :	28.08.1958
Date of Appointment :	02.09.2008
Name :	Mr. Silverio Bonfiglioli
Designation :	Director
Address :	VIA Altopiano 75, 40037, Sasso Marconi BO, Italy
Date of Birth/Age :	07.12.1949
Date of Appointment :	26.09.2008
Name :	Mr. Giovanni Bartoli
Designation :	Director
Address :	VIA Dell Olivara, 129, Livorno 57128, Italy
Date of Birth/Age :	02.11.1947
Date of Appointment :	19.03.2008
Name :	Mr. Paolino Gagliardo
Designation :	Director
Address :	Corso Vittorig, Emanuelle II, N.96, 9C B, Toring, Italy
Date of Birth/Age :	23.04.1964
Date of Appointment :	09.06.2010
Name :	Mr. Carl Peter Forster
Designation :	Director
Address :	Karl Theodor, STR 25, Munchen 80803
Date of Birth/Age :	09.05.1954
Date of Appointment :	09.06.2010
Name :	Mr. Girish Arun Wagh
Designation :	Director
Address :	Flat No.3, Pradnya Kiran Apartments, Pradnya Park, Mahatma Housing Society, Kothrud, Pune – 411029, Maharashtra, India
Date of Birth/Age :	02.12.1976
Date of Appointment :	06.07.2010

KEY EXECUTIVES

Name :	Mr. Anil Ishwar Joshi
Designation :	Company Secretary
Address :	2/2, Telec, Plot No.30, Sector 17, Vashi Navi Mumbai – 400703, Maharashtra, India
Date of Birth/Age :	21.12.1961
Date of Appointments :	01.07.2005

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 23.09.2010

Names of Shareholders	No. of Shares
Fiat Group Automobiles SPA, Italy	71746392
Alberto Sibille (As a nominee of Fiat Group Automobiles SPA), Italy	1
Tata Motors Limited, Mumbai	71746392
Tata Motors Limited Jointly with Rajiv Dube, Mumbai	1
Tata Motors Limited Jointly with Chandrasekaran Ramakrishnan	1
Tata Motors Limited Jointly with Hoshang Sethna	1
Fiat Group Automobiles SPA Jointly with Stefano Reganzani	1
Fiat Group Automobiles SPA Stefano Salvini	1
Total	143492790

Equity Share Breakup (Percentage of Total Equity)

(AS ON 23.09.2010)

Category	Percentage
Foreign holdings [Foreign institutional investors, Foreign Companies, Foreign Financial Institutions, Non-resident Indian or Overseas corporate bodies or others]	50.00
Bodies corporate	50.00
Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer of Automobiles
Products :	Products : Passenger Car Item Code No.: 87.03

PRODUCTION STATUS (AS ON 31.03.2010)

Particulars	Unit	Installed Capacity	Actual Production
Car	Nos	200000	50234
Power Train	Nos	350000	110326

* The installed capacity has been certified by the company, with the auditors have relied on without verification.

GENERAL INFORMATION

No. of Employees :

600 (Approximately)

Bankers :

State Bank of India, Corporate Accounts Group, Voltas House, 23, J.N. Herredia Marg, Ballard Estate, Mumbai-400001, Maharashtra, India

Facilities :

Secured Loan	Rs. In Millions 31.03.2010	Rs. In Millions 31.03.2009
From Banks : Term Loans (refer note no. I below) (includes interest accrued and due Rs. 66.880 million) External Commercial Borrowings Cash Credit	10066.880 6995.260 2888.430	0.000 0.000 0.000
Total	19950.570	0.000
Unsecured Loan	Rs. In Millions 31.03.2010	Rs. In Millions 31.03.2009
Long term loans : From Shareholders Tata Motors Limited Fiat Group AIPtomobiles 5.p.A. Short-term loans : From Banks From Others From a shareholder (Taw Motors Limited) Interest accrued and due Other loans From Others Dues under finance lease agreement	2650.000 2374.280 0.000 1000.000 43.500 850.000 127.120	0.000 0.000 6600.000 5853.610 2650.000 0.000 282.510
Total	7044.900	15418.490

Notes:-

Term Loans and External Commercial Borrowings are secured by a pari passu charge

by way of mortgage of a11 land and buildings, plant and machinery and other fixed assets both present and future.

2. The working capita1 borrowings are secured by iirsl ranking pari passu charge over all the current assets.

Banking Relations :	---
Auditors :
Name :	Deloitte Haskins and Sells Chartered Accountants
Address :	12, Dr. Annie Besant Road, Opposite Shiv Sagar Estate, Worli, Mumbai 400018, Maharashtra, India
Tel No.:	91-22-66679000
Fax No.:	91-22-66679025/ 65679100
Associates/Subsidiaries :	Fiat India Private Limited U29220MH1992PTC069675

CAPITAL STRUCTURE

As on 31.03.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
400000000	Equity Shares	Rs. 100/- each	Rs.40000.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
143492790	Equity Shares	Rs. 100/- each	Rs. 14349.280 Millions

Note: The above shares are held by :-

• 7 1,746,395 (2009: 43,746,395) equity shares of Rs.100/- each) - Fiat Group Automobiles S.p.A. and its nominees
• 7 1,746,395 (2009 : 43,744,395) equity shares of Rs.100/- each) - Tata Motors Limited and its nominees

AFTER AS ON 23.09.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
400000000	Equity Shares	Rs. 100/- each	Rs.40000.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
183492790	Equity Shares	Rs. 100/- each	Rs. 18349.279 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2010	31.03.2009	31.03.2008
SHAREHOLDERS FUNDS
1] Share Capital		14349.280	8749.280	6679.490
2] Share Application Money		0.000	3000.000	0.000
3] Reserves & Surplus		2014.260	1660.650	1550.949
4] (Accumulated Losses)		(900.228)	(6112.590)	0.000
NETWORTH		7361.260	7297.340	8230.439
LOAN FUNDS
1] Secured Loans		19950.570	0.000	0.000
2] Unsecured Loans		7044.900	15418.490	1796.301
TOTAL BORROWING		26995.470	15418.490	1796.301
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		34356.730	22715.830	10026.740
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		34636.130	30574.310	3644.671
Capital work-in-progress		750.650	2312.680	12233.445
INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	4803.370	6314.150	1204.293
	Sundry Debtors	6214.150	1610.630	45.229
	Cash & Bank Balances	2911.580	2163.300	2.621
	Other Current Assets	5.350	0.910	0.000
	Loans & Advances	5601.990	4760.580	1544.577
Total Current Assets		19536.440	14849.570	2796.720
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	19629.730	24297.840	7995.456
	Others Current Liabilities	764.660	672.650	617.770
	Provisions	172.100	50.240	34.876
Total Current Liabilities		20566.490	25020.730	8648.096
Net Current Assets		(1030.050)	(10171.160)	(5851.376)
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		34356.730	22715.830	10026.734

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008
	SALES
		Income	27644.900	7033.120	857.264
		Other Income	5701.700	887.080	2842.359
		TOTAL (A)	33346.600	7920.200	3699.623
Less	EXPENSES
		Raw Material, Semi Finished Goods	25094.790	8393.020	0.000
		Excise Duty	105.690	74.970	12.444
		Personal Cost	889.480	686.690	0.000
		Other Expenses	4320.840	2849.490	4100.398
		Increased / (Decreased) In stock	0.000	0.000	(17.117)
		TOTAL (B)	30410.800	12004.170	4095.725
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		2935.800	(4083.970)	(396.102)
Less	FINANCIAL EXPENSES (D)		3009.600	1387.090	61.801
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		(73.800)	(5471.060)	(457.903)
Less/ Add	DEPRECIATION/ AMORTISATION (F)		2815.890	1191.170	158.876
Less	TRASFERRED TO EXPENDITURE DURING COSTRUCTION PERIOD		0.000	(580.440)	(253.333)
	PROFIT BEFORE TAX (E-F) (G)		(2889.690)	(6081.790)	(363.446)
Less	TAX (I)		0.000	0.000	19.798
	PROFIT AFTER TAX (G-I) (J)		(2889.690)	(6081.790)	(383.244)
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		(6112.590)	(6112.590)	NA
	BALANCE CARRIED TO THE B/S		(9002.280)	(6112.590)	NA
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	2342.830	23.600	53.342
	TOTAL EARNINGS		2342.830	23.600	53.342
	IMPORTS
		Raw Materials	6587.860	8062.130	1255.988
		Traded Goods	1.300	85.190	0.000
		Capital Goods	770.570	6545.370	6616.114
	TOTAL IMPORTS		7359.730	14692.690	7872.102
	Earnings Per Share (Rs.)		(24.42)	(12.84)	--

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	(8.66)	(78.31)	(10.36)
Net Profit Margin (PBT/Sales)	(%)	(10.45)	(87.90)	(42.36)
Return on Total Assets (PBT/Total Assets}	(%)	(5.33)	(13.42)	(5.64)
Return on Investment (ROI) (PBT/Networth)		(0.39)	(0.83)	(0.04)
Debt Equity Ratio (Total Liability/Networth)		6.46	5.53	1.27
Current Ratio (Current Asset/Current Liability)		0.95	0.59	0.32

LOCAL AGENCY FURTHER INFORMATION

SUNDRY CREDITORS DETAILS :

(Rs. In Millions)

Particulars	31.03.2010	31.03.2009	31.03.2008
Total Outstanding dues to micro enterprises and small enterprises	44.710	100.730	196.888
Total outstanding dues of creditors other than micro enterprises and small enterprises	19585.020	24197.110	7798.568
Total	19629.730	24297.840	43927.570

NOTE :

The Registered office of the company has been shifted from Lalbahadur Shastri Marg, Kurla [West], Mumbai 400070, Maharashtra, India to Plot No. B – 19, MIDC, Rajangaon Industrial Area, Ranjangaon, Taluka Shirur, Pune 412210, Maharashtra, India, to the present address w. e. f. 07.12.2006.

FORM 8

Bankers Charges Report as per Registry

Corporate identity number of the company	U28900PN1997PLC130940
Name of the company	FIAT INDIA AUTOMOBILES LIMITED
Address of the registered office or of the principal place of business in India of the company	Plot No. B – 19, MIDC, Rajangaon Industrial Area, Ranjangaon, Taluka Shirur, Pune 412210, Maharashtra, India
This form is for	Creation of Charge
Type of charge	Immovable Share Capital Any interest in immovable property Book Debts Movable Property Floating Charge Others Goodwill Patent, Licence under a patent Trademark Copyright or license under a copyright
Particular of charge holder	State Bank of India, Corporate Accounts Group, Voltas House, 23, J.N. Herredia Marg, Ballard Estate, Mumbai-400001, Maharashtra, India
Nature of instrument creating charge	Indenture of Mortgage dated July 29, 2009 between Fiat India Automobiles Limited and State Bank of India
Date of instrument Creating the charge	29.07.2009
Amount secured by the charge	Rs. 6000.000 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Terms of Repayment On demand Margin 1. SBI: (i) Raw Materials (Domestic/ Imported):25% (ii) SIP/FG/Stores and Spares:25% (iii) Book/ Debts (cover period-90 days):35% (iv) Margin for Non-Fund Based Facilities:Nil 2. IDBI Bank (i) Stock:20% (ii) Receivables:20%(upto 90 days) (iii) Margin for Non-Fund based Facilities:15% 3. PNB:Margin for Cash Credit/ WCDL:25% 4. Union Bank of India (i) Margin for Cash Credit/ WCDL:25% (ii) Margin for Non-Fund Based Facilities:5% 5. Citibank:Margin to be mutually agreed Extent and Operation of the charge Mortgage and charge for the benefit of the INR Facility Lenders,

FIXED ASSETS:

• Lease hold Land
• Building
• Plant and Machinery
• Furniture, Fitting and Office Equipment
• Vehicles
• Computer Software

CMT REPORT (Corruption, Money Laundering & Terrorism]

The Public Notice information has been collected from various sources including but not limited to: The Courts, India Prisons Service, Interpol, etc.

1] INFORMATION ON DESIGNATED PARTY

No exist designating subject or any of its beneficial owners, controlling shareholders or senior officers as terrorist or terrorist organization or whom notice had been received that all financial transactions involving their assets have been blocked or convicted, found guilty or against whom a judgement or order had been entered in a proceedings for violating money-laundering, anti-corruption or bribery or international economic or anti-terrorism sanction laws or whose assets were seized, blocked, frozen or ordered forfeited for violation of money laundering or international anti-terrorism laws.

2] Court Declaration :

No records exist to suggest that subject is or was the subject of any formal or informal allegations, prosecutions or other official proceeding for making any prohibited payments or other improper payments to government officials for engaging in prohibited transactions or with designated parties.

3] Asset Declaration :

No records exist to suggest that the property or assets of the subject are derived from criminal conduct or a prohibited transaction.

4] Record on Financial Crime :

Charges or conviction registered against subject: None

5] Records on Violation of Anti-Corruption Laws :

Charges or investigation registered against subject: None

6] Records on Int’l Anti-Money Laundering Laws/Standards :

Charges or investigation registered against subject: None

7] Criminal Records

No available information exist that suggest that subject or any of its principals have been formally charged or convicted by a competent governmental authority for any financial crime or under any formal investigation by a competent government authority for any violation of anti-corruption laws or international anti-money laundering laws or standard.

8] Affiliation with Government :

No record exists to suggest that any director or indirect owners, controlling shareholders, director, officer or employee of the company is a government official or a family member or close business associate of a Government official.

9] Compensation Package :

Our market survey revealed that the amount of compensation sought by the subject is fair and reasonable and comparable to compensation paid to others for similar services.

10] Press Report :

No press reports / filings exists on the subject.

CORPORATE GOVERNANCE

MIRA INFORM as part of its Due Diligence do provide comments on Corporate Governance to identify management and governance. These factors often have been predictive and in some cases have created vulnerabilities to credit deterioration.

Our Governance Assessment focuses principally on the interactions between a company’s management, its Board of Directors, Shareholders and other financial stakeholders.

CONTRAVENTION

Subject is not known to have contravened any existing local laws, regulations or policies that prohibit, restrict or otherwise affect the terms and conditions that could be included in the agreement with the subject.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs. 44.52
UK Pound	1	Rs. 71.80
Euro	1	Rs. 63.15

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	3
OPERATING SCALE	1~10	4
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	4
--PROFITABILIRY	1~10	--
--LIQUIDITY	1~10	4
--LEVERAGE	1~10	4
--RESERVES	1~10	--
--CREDIT LINES	1~10	4
--MARGINS	-5~5	--
DEMERIT POINTS
--BANK CHARGES	YES/NO	NO
--LITIGATION	YES/NO	NO
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	YES
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		28

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

Financial condition (40%) Ownership background (20%) Payment record (10%)

Credit history (10%) Market trend (10%) Operational size (10%)

RATING EXPLANATIONS

RATING		STATUS	PROPOSED CREDIT LINE
>86	Aaa	Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums	Unlimited
71-85	Aa	Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums	Large
56-70	A	Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums	Fairly Large
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small
11-25	Ca	Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity	Limited with full security
<10	C	Absolute credit risk exists. Caution needed to be exercised	Credit not recommended
-	NB	New Business	-

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.